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Fall in pound may hit smaller clubs

The fall in the value of the pound against other currencies may hit smaller clubs harder than leading clubs. The biggest football clubs in the Premier League routinely hedge against currency movements, earning euros from playing in European competitions and dollars from international sponsorship deals. Smaller clubs with fewer international revenue streams may be stretched by the drop in the pound.

Overseas footballers are seeking to defend their pay packets by hedging against the drop in the pound. Argentex, a boutique currency firm that specialises in services to the sports market, said there had been a 43 per cent increase in the volume of currency being hedged by sporting customers since the Brexit vote. The company, whose clients include Manchester City, allow individuals and companies to lock in the current exchange rate for several months, paying a fee of 1-3 per cent of the total amount hedged.

In the Premier League, foreign nationals from 65 countries account for 70 per cent of players, the highest of any league in the world.

Manchester United have said that new players from overseas began to be ask to be paid in euros, but it declined such requests because it did not have enough euros in hand.

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